In Amsterdam, where the labor market is vibrant with numerous businesses in the canal district and Zuidas, the calculation of the transition compensation follows a straightforward formula: for each full year of service, 1/3 of a month's salary, with a maximum of €94,000 or one annual salary in 2025. Use the gross salary including holiday allowance and fixed allowances, excluding variable bonuses – typical for Amsterdam sectors such as tech and hospitality.
Example 1: An Amsterdam barista with 6 years of service at a hospitality business in the Jordaan and a monthly salary of €3,000. Calculation: (6 x 1/3 x €3,000) = €6,000. Example 2: A marketer with 15 years of service at a Zuidas company and a salary of €4,500: (10 x 1/3 x €4,500) + (5 x 1/2 x €4,500) = €11,250 (note the transitional arrangement for longer years of service). Partial years, such as half a year at a startup in Amsterdam-Noord, count pro rata.
Use the online calculation tool provided by the Dutch government for exact amounts. In cases of dismissal during maternity leave or illness, protective rules apply, but the calculation remains the same. Employers in Amsterdam must pay the compensation within one month after the dismissal date. In local collective labor agreements (CAOs), such as those for Amsterdam hospitality or municipal sectors, a higher compensation may have been agreed upon, which takes precedence over the statutory minimum.
Tip: Keep payslips as evidence, especially for flexible contracts in Amsterdam's gig economy. In case of disputes, you can turn to the subdistrict court at the Amsterdam District Court within two months after dismissal – a procedure that often proceeds quickly in this busy region.